The head of the Philippine Amusement and Gaming Corporation (PAGCOR) believes that the Philippines is within striking distance of surpassing Singapore to become the second-largest gaming revenue producer in the region, just behind Macau.
During a 2 July interview with Bloomberg, PAGCOR chairman and CEO Alejandro Tengco expressed his optimism, stating, “If Singapore doesn’t expand, it will plateau. Don’t be surprised if next year we will surpass them.”
Tengco’s remarks are rooted in the reality of Singapore’s gaming market, which currently operates under a duopoly. Resorts World Sentosa and Marina Bay Sands hold exclusive gaming licenses in Singapore until at least 2030. These two integrated resorts (IRs) have dominated the high-stakes gaming scene, leading to a substantial annual gross gaming revenue (GGR) of approximately $6 billion. In contrast, the Philippines, with its 76 casinos and gaming halls, managed to generate $4.8 billion in GGR last year.
However, Tengco is confident that the Philippines can close this revenue gap with the addition of new gaming establishments. A prime example is Bloomberry Resorts Corporation’s newly inaugurated five-star, billion-dollar Solaire North in Quezon City, which opened its doors in May. Boasting 200 gaming tables and thousands of slot machines, this establishment marks a significant milestone. At the ribbon-cutting ceremony, Tengco remarked, “The sister property of Solaire in Manila’s Entertainment City marks a new era not only for the Philippine gaming industry but also for the tourism industry.”
Plans are also moving forward for additional casinos in Clark, Boracay, and Cebu. Among the most notable developments is Tiger Resort, Leisure and Entertainment Inc. (TRLEI), the operator of Okada Manila, which is considering acquiring PH Resorts’ stalled Emerald City casino project.
These new resorts are expected to bolster global tourism, contributing to the Philippines’ objective of attracting 7.7 million international visitors by 2024, just shy of the 8.26 million recorded in 2019.
. As of April, nearly 2 million international tourists had already visited the Philippines, with foreigners constituting 94% of this figure and overseas Filipinos making up the rest.
According to statistics from the Department of Tourism as reported by the Philippine Star, Koreans have emerged as the largest foreign visitor group, accounting for over 27 percent of the total visitor base. Korean tourists also lead in casino visitation, closely followed by travelers from Japan, Malaysia, and Singapore. Tengco believes that the new IRs will “hopefully neutralise the decline in Chinese tourist arrivals,” a trend Singapore has countered with a mutual visa-free policy agreement that started in February, significantly boosting Chinese visitation.
In an effort to attract more foreign investment, the Philippines is also working on strengthening its anti-money laundering (AML) protocols, aiming to get off the Financial Action Task Force’s (FATF) gray list. This list includes countries with financial systems considered vulnerable to money laundering and financial crimes. Given the FATF’s heightened scrutiny of casinos, the Anti-Money Laundering Council (AMLC) is particularly focused on bringing the Philippines up to standard. AMLC chief Matthew David has expressed confidence that the country will “exit the gray list this year.”
Meanwhile, Singapore is not standing still. Resorts World Sentosa is on the brink of a $5 billion expansion known as RWS 2.0, which will feature a new 700-key waterfront resort. Other ongoing projects include Minion Land at Universal Studios Singapore and the Singapore Oceanarium, both slated for completion early next year. Marina Bay Sands is also planning a $3.3 billion expansion to add a fourth hotel tower, an expanded gaming floor, more MICE (Meetings, Incentives, Conferences, and Exhibitions) facilities, and a 15,000-seat entertainment arena.
Given these extensive developments, Rob Goldstein, CEO of Las Vegas Sands Corp., is projecting that Singapore’s GGR could reach $7 billion this year, with potential growth to $10 billion in the near future, potentially maintaining its edge over the Philippines.
As gaming analyst Christopher Khoo told Asia Gaming Brief, “Competition will certainly keep everyone on their toes.” With ambitious expansion plans and strategic developments on both sides, the contest for the second spot in global gaming revenue is heating up, promising a dynamic future for the industry.
